Know your card's credit limits

Rucha Biju Chitrodia, TNNMay 2, 2009, 05.46am IST

Not all consumers learnt about the recent lowering of credit limits by card-issuing banks the usual way—via a bank statement , email or SMS. According to a senior Mumbai banker, they learnt about the sudden development only when their card swipe transaction was declined at a merchant establishment. The banker says aggrieved consumers can file a complaint at the banking ombudsman on two counts.

One, for not being informed about the change. According to the Banking Codes and Standards Board of India , an independent banking industry watchdog, banks must notify any change in fees or charges, through the website, statements of accounts , email, SMS alerts and notice board at branches — 30 days before the revised charges become effective.

Not informing consumers is a violation of the Code of Bank's Commitment. "Banks sometimes try to wriggle out of their responsibility of informing customers by saying that the statement (to the effect ) had been mailed. But they have to prove that it was received by the customer by producing a copy of the acknowledgement along with the date of issue of the statement,'' says the banker.

Two, the consumer can file another, deficiency in service case for "loss of face' ' one suffers when a card transaction is rejected in public. Consumers usually do not report one-off denial of card swipe, although it can seriously embarrass and inconvenience them, especially at a restaurant, a medical facility or while paying for tickets.

Such a situation could arise vis-a-vis debit cards too. A Mumbai resident, who recently produced his debit card at a supermarket, was shocked to learn that his transaction was denied. The counter executive could not swipe the card more than twice, because after a third unsuccessful swipe, it would get automatically blocked. The consumer was all the more worried about his account balance. He called up the bank helpline and was relieved to learn that it was safe.